What is the dominant position of Bitcoin BTC? What is the reason that affects Bitcoin monopoly? Although there are thousands of counterfeit coins, the market value of Bitcoin is still the highest among all digital assets. By observing the share of Bitcoin in the market value of the whole cryptocurrency, traders observed several repeated market patterns. After Bitcoin took the lead, some people began to simulate their trading behavior. It is believed that the dominant position of BTC can reveal the overall market trend. So what is the dominant position of Bitcoin? Let's take a look.

What is the dominant position of Bitcoin BTC?

At present, Bitcoin's market share in the cryptocurrency industry is affected by BTC's hegemony. The market value represents the market value, which is the abbreviation of the current value of the asset. Market value is usually expressed in legal tender such as US dollar.

The current number of tokens in circulation is multiplied by the market value of the token to obtain the market value of cryptocurrency. The price of Bitcoin continues to rise. Although it is very popular, it is one of the most unpredictable cryptocurrencies in the market.

What is the reason that affects Bitcoin monopoly?

1. Adapt to fashion

Before the rise of alternative currencies, Bitcoin often dominated more than 90%. As Shanzhai coin as a whole has gained more users and investors' interest, Bitcoin has lost some of this almost split interest and turned to other assets with greater price fluctuations and projects selling new interesting use scenarios.

The development of Bitcoin is to change the way of value transfer, but the cryptocurrency plan has made progress and can do more. Unlike Bitcoin, in addition to remittance, many counterfeit coins are also active in various industries, such as games, art and decentralized financial services.

2. Pre-digging currency and hard fork

The hard bifurcations and pre-dug coins of the Bitcoin network have artificially increased the supply, thus increasing the market value. Another argument against interpreting the market value of cryptocurrency as its true value

3. Price fluctuation of counterfeit currency

The price fluctuation of counterfeit coins will affect the dominant position of Bitcoin. Since most counterfeit coins have a fixed supply, if investment increases, Bitcoin's market dominance will decline.

4. Introduce new coins

When new currencies enter the market, their popularity will rise rapidly, thus weakening the dominant position of BTC. Bitcoin is competing with all other cryptocurrencies in the market, and the simultaneous rise of many well-known counterfeit currencies may have an impact on it. However, after the initial excitement subsides, these replacement coins may become less popular. If this happens and funds are transferred from these cryptocurrencies to BTC or completely leave the cryptocurrency market, BTC's dominance may reappear.

In general, the dominant position of Bitcoin can be used to reveal how the market cycle evolves. Others use it to manage their various portfolios, while other traders use it to modify their trading strategies. It is worth noting that the dominant position of Bitcoin can be used as a guide to help traders plan trading strategies, but it cannot guarantee the performance of Bitcoin or any other cryptocurrency.